Fresh blow for punters as price of pint to rise by 2p after alcohol duty hike

The Chancellor has announced a 2p increase to the cost of a pint in a 'kick in the teeth' for pubs that landlords have warned will 'bleed us dry'.John Healey confirmed the rise in alcohol duty in today's Budget, defying pleas from the hospitality industry and trade bodies to protect the nation's boozers.The duty charged per pint sold to drinkers will rise in line with Retail Prices Index inflation, currently 3.9 per cent, from February 1.Mr Healey did not mention the duty rise in the House of Commons but the change is listed in Budget documents published on the government's website. A 3.9 per cent RPI is the equivalent of increasing the tax paid per pint from 50p to 52p.For an average bottle of wine, the increase will see alcohol duty rise by between 10p and 12p, while a bottle of 37.5 per cent spirit will increase in price by 35p. The tax is charged on the production, distribution or imports of alcohol stronger than 1.2 per cent.Andy Lennox, who runs The Old Thatch in Wimborne, Dorset, and campaigns on behalf of publicans, told the Daily Mail ahead of the Budget: 'Another alcohol duty rise would be a kick in the teeth for hospitality. Andy Lennox, who runs The Old Thatch in Wimborne, Dorset, said before the Budget another alcohol duty raise would be a 'kick in the teeth' for hospitalityThe Chancellor (pictured with the Prime Minister in July) set out the plans in his Budget today John Healey confirmed the rise in alcohol duty in today's Budget, defying pleas from the hospitality industry and trade bodies to protect the nation's boozers'We either swallow costs we cannot afford or pass them on to customers who are already stretched. A cut to VAT on hospitality food and drink in line with Europe is what is needed. 'Stop calling us the beating heart of the economy while bleeding us dry. You cannot demand growth and jobs while taxing the businesses that deliver them into closure.' Elsewhere, Mr Healey announced £10million of alcohol duty tax relief for more than 2,000 small brewers of beer and cider. Under the change, products of less than 3.5 per cent ABV will receive a larger discount than higher percentage products.Those between 3.5 per cent and 8.4 per cent ABV will see their duty discount rise in line with RPI inflation, plus an additional 10 per cent.These reforms will also come into effect from February. Trade bodies and MPs had called for the duty rate to be frozen or even cut, following a rise already this year of 3.66 per cent in February.This saw 6p added to the price of an average pack of lager, a bottle of wine go up in price by 13p and prosecco up 11p.For the 2025-26 financial year, alcohol duty raised some £12.44billion for the government – slightly down from its peak of £13.2billion in 2021-22.Miles Beale, the chief executive of the Wine and Spirit Trade Association, had called on the Chancellor to freeze alcohol duty, citing pressures on the industry from rising fuel prices and inflation. What the Budget really means for you Hi, I'm Simon Lambert, publisher of This Is Money, and now that the Budget has landed, it's important you get your finances in order. We now know exactly what the Budget included and what you need to do to protect your money. But it's not just this Budget we need to worry about, as a painful set of tax raids were already on the way. So, I've enlisted the help of leading financial experts to create a six-week plan. We explain what you need to know and how to protect your finances. > Click here and sign up to Protect Your Money now 'With a cost of living crisis and an aim for growth in every postcode, this Government should be supporting not squeezing the British drinks sector,' he said.'The Chancellor cannot control global fuel prices, but he can put the brakes on relentless and punishing alcohol tax increases, which have consistently failed to raise revenue.'After the Budget, he said: 'No-one will be toasting yet another RPI increase on top of rising inflation. Instead of providing breathing space in a cost of living crisis the Chancellor's alcohol tax hikes will further stifle British business and serve up nothing for consumers.'The only way to give families and businesses a break from the suffocating economic crisis is to stop the hikes, look at the numbers and listen to those being impacted.'The old tactics are not working for anyone. Increasing alcohol duty is not boosting Treasury funds, but it is closing down businesses and pricing consumers out of a bit of joy in their shopping basket.'Emma McClarkin, the chief executive of the British Beer and Pub Association, said: 'At a time when young people are finding it really tough to find work, supporting the beer and pub sector would mean the Government are helping us create much-needed jobs.'Our brewers are forced to pay some of the highest rates of beer duty in Europe, 12 times more than Germany and Spain. Freezing the tax at its current rate, rather than the current planned increase, will start to bring our brewers closer in line with our European counterparts.' And Labour MP and chair of the All-Party Parliamentary Group for UK Spirits, Carolyn Harris, told The Sun yesterday: 'If ministers are serious about saving pubs they need to stop discriminating against spirits with gimmicks like a penny off a pint and treat every drinker fairly.'The government has also pledged to introduce a Guest Beer provision in the Pubs Code of England and Wales, intended to give tied pub tenants greater flexibility over the beers they stock and support for smaller brewers. The Burnham Budget is here... but what does it mean for YOU? Click here to sign up to Simon Lambert's subscriber-exclusive newsletter series and learn exactly how to Protect Your Money.